Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio? M/B= Market price per share/ Book value per share Market price per share = $75/ share Book value per share= Common equity/ shares outstanding = $6 billion/ 800 million shares = $6 billion/ .8 billion shares= 7.5 M/B = $75/ 7.5 = 10 (3-4) Price/Earnings Ratio: A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0.
Question 23 Which of the following statements is CORRECT? Question 24 Which of the following bonds has the greatest interest rate price risk? Question 25 A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements is CORRECT? Question 26 Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of which are noncallable, are as
Calculate the following financial ratios. TIP: If you don't remember how to calculate financial ratios, review the Calculating Financial Ratio pages from Section 9, Lesson 2 of this course. a. A company makes a net profit before tax of $12,000 and has $20,000 in total equity. Calculate the company's return on equity as a percentage.
depreciation over 3 years Depreciation costs per year: 24/3= 8 mln per year. Q3. Tax rate in 2012 = Income Tax Expense / Income Before Tax = 1127mln/4914 mln = 22,93% Q4. | Year 0 | Year 1 | Year 2 | Year 3 | | | | | | | | R&D expenses | -77 | | | | | | | | | | | Total Revenues | | 110 | 83 | 55 | All in millions | Cost of Goods Sold | | -8 | -8 | -5 | | Gross Profit | | 102 | 75 | 50 | | depreciation | | -8 | -8 | -8 | | Adm/sales/etc | | -3 | -3 | -2 | | EBIT | -77 | 91 | 64 | 40 | | Unl Net income | -59,34 | 70,13 | 49,32 | 30,83 | | Q5.
A certain red light has a wavelength of 725 nm and another red light has a frequency of 4.28 X 1014 /sec. Which would have higher energy per photon? (4.28 X 1014/sec; it is shorter) ______________8. Find the color of light whose frequency is 5.21 X 1014 cycles/sec.
9.the primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are: 10.The ____ is the ratio of ____ to the ____. 11.Sources of positive net present value projects include 12.Receiving $100 at the end of the next three years is worth more to me than receiving $260 right now, when my required interest rate is 10%. 13.The number of standard deviations z that a particular value of r is from the mean ȓ can be computed as z = (r - ȓ)/ Suppose that you work as a commission-only insurance agent earning $1,000 per week on average. Suppose that your standard deviation of weekly earnings is $500. What is the probability that you zero in a week?
Compute the probability of no website visitors in a one-minute period. b. Compute the probability of two or more website visitors in a one-minute period. c. Compute the probability of one or more website visitors in a 30-second period. d. Compute the probability of five or more website visitors in a one-minute period. Exercise 3 : The average stock price for companies making up the S&P 500 is 30$, and the standard deviation is $8.20 (BusinessWeek, Special Annual Issue, Spring 2003).
FINANCE CASE STUDY “Wonder Bars” Important information * Interest bearing debt of the company in 1994 ― $ 76,132,000 with a weighted average interest rate of 8.2% 8.25% sinking fund, n=12 years, $133 million * Coupon interest = 9.375%, $100 million WB had two long term bond outstanding Common stock, 75 million shares * Class B stock, $10 million shares The firm has 2 classes of common stocks Both stock have a price of 35$ / share and the beta of the company is 0.95 * Treasury bill = 5% * S&P 500 index = 12% in 10 years * Federal and state income tax = 40% * Sonzoni Food beta = 0.9 SOLUTION Question 1: What is WB’s capital structure? Capital structure is a way to determine